Carroll's resignation was announced Wednesday, one day after she gave her resignation letter to Gov. Rick Scott. His chief of staff, Adam Hollingsworth, said her resignation was spurred by an investigation into the Allied Veterans of the World.

"Lt. Gov. Carroll resigned in an effort to keep her former affiliation with the company from distracting from the administration’s important work on behalf of Florida families," Hollingsworth said in a statement. "She made the right decision for the state and her family."

Sources told WESH 2's Greg Fox on Wednesday afternoon that she may be arrested and charged in the case.

Officials from that non profit Internet cafe company were recently arrested on racketeering charges. The owner was arrested Tuesday in connection to allegations that he made $290 million after supplying illegal gambling software in Florida and claiming the games' proceeds would benefit a veterans group. According to investigators, only two percent went to charity.

Arrest warrants were issued for 57 people -- 17 of them from Central Florida. Authorities also seize 260 bank accounts, 170 properties and 80 vehicles or vessels in the investigation.

Carroll's ties to the company were questioned when she was in the Legislature when she proposed a bill that would benefit Internet cafes while also doing public relations consulting for the firm. The industry said the cafes allows people to partake in sweepstakes, but critics said the establishments are basically gaming parlors.

Several central Florida Internet cafes associated with the Allied Veterans of the World were raided by investigators on Wednesday. The raids took place in Marion, Brevard and Volusia counties.

According to the Internal Revenue Service, "The fundraising centers were nothing more than Internet casinos that operated slot machines in violation of Florida's gambling laws."

"Allied Veterans represented that (they) donated anywhere from 70 percent to all of the net proceeds," said IRS agent Michael Favors. "However, only 2 percent of $290 million in proceeds (was donated)."

A total of 51 Florida locations were searched as part of the investigation.